MOSCOW, September 18. /TASS/. Russia’s Central Bank still sees scope for further reduction of its key rate, the regulator’s Chief Elvira Nabiullina told an online conference following the regulator’s board meeting on Friday.
"We still see scope for key rate reduction," she said.
Meanwhile, the key rate will return to the neutral corridor of 5-6% per annum at some point, Nabiullina noted, adding though that it is still early to speak about that so far.
"We realize that we will have to return to the neutral range at some point. So far, we expect that in the second half of the three-year projected period - by the end of that period. When that will happen and how fast will depend on how the situation unfolds, and so far, it is absolutely early to speak about that," she explained.
It is necessary to keep soft monetary policy next year to stabilize inflation to mid-term targets in 2021, the regulator’s Chief said.
"We take into account the fact that for stabilizing inflation close to 4% in the projected horizon it is necessary to keep soft monetary policy next year," she said.
The Bank of Russia kept the key rate at an all-time low level of 4.25% per annum at its board meeting earlier on Friday following four rounds of its reduction.